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                                                                  H.B. No. 153



AN ACT
relating to authorizing the issuance of revenue bonds or other obligations to fund capital projects at public institutions of higher education; making an appropriation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 55, Education Code, is amended by adding Sections 55.1751, 55.1752, 55.1753, 55.1754, 55.1755, 55.1756, 55.1757, 55.1758, 55.1759, 55.17591, and 55.17592 to read as follows: Sec. 55.1751. THE TEXAS A&M UNIVERSITY SYSTEM; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of The Texas A&M University System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board for the following institutions and facilities not to exceed the following aggregate principal amounts for the projects specified as follows: (1) Tarleton State University: (A) $11,124,000 for the Tarleton State University Dairy Center; and (B) $24,300,000 for a nursing building; (2) Texas A&M University--Central Texas, $25 million for educational and related facilities; (3) Texas A&M University--Commerce, $21,770,000 for a music building; (4) Texas A&M University--Corpus Christi, $45 million for a nursing, health sciences, and kinesiology facility; (5) Texas A&M University--Kingsville, $9,540,000 for the citrus center building; (6) Texas A&M University--San Antonio, $40 million for educational and related facilities; (7) Texas A&M University--Texarkana, $75 million for a multipurpose library building and central plant; (8) West Texas A&M University, $16,200,000 for classroom center renovation; (9) The Texas A&M University System Health Science Center, $45 million for a medical education and research building in College Station, Texas; (10) Texas A&M University, $75 million for the Emerging Technologies Interdisciplinary Building; (11) Texas A&M University at Galveston, $40,050,000 for a science building; and (12) Texas A&M International University: (A) $25 million for the student success center; (B) $4,950,000 for the completion of the fine arts theater; and (C) $7,626,600 for the Loop Road and Chill Water Loop project. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of The Texas A&M University System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of The Texas A&M University System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. (d) Notwithstanding Subsection (a), The Texas A&M University System may not issue bonds under this section for facilities at Texas A&M University--Central Texas until the Texas Higher Education Coordinating Board certifies that enrollment at Texas A&M University--Central Texas has reached an enrollment equivalent of 1,500 full-time students for one semester. If that enrollment is not reached by January 1, 2010, the system's authority to issue bonds for Texas A&M University--Central Texas under this section expires on that date. (e) Notwithstanding Subsection (a), The Texas A&M University System may not issue bonds under this section for facilities at Texas A&M University--San Antonio until the Texas Higher Education Coordinating Board certifies that enrollment at Texas A&M University--San Antonio has reached an enrollment equivalent of 1,500 full-time students for one semester. If that enrollment is not reached by January 1, 2010, the system's authority to issue bonds for Texas A&M University--San Antonio under this section expires on that date. Sec. 55.1752. THE UNIVERSITY OF TEXAS SYSTEM; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of The University of Texas System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board for the following institutions not to exceed the following aggregate principal amounts for the projects specified as follows: (1) The University of Texas at Arlington, $70,430,000 for an Engineering Research Building; (2) The University of Texas at Austin, $105 million for the renovation of the Experimental Science Building; (3) The University of Texas at Brownsville, $33,800,000 for a Science and Technology Learning Center; (4) The University of Texas at Dallas, $12 million for a vivarium and experimental space; (5) The University of Texas at El Paso, $76,500,000 for a physical sciences/engineering core facility; (6) The University of Texas--Pan American: (A) $6 million for the Starr County Upper Level Center; and (B) $39,796,000 for the fine arts academic and performance complex; (7) The University of Texas of the Permian Basin: (A) $54 million for a science and technology complex; and (B) $45 million for an arts convocation and classroom facility at the CEED; (8) The University of Texas at San Antonio, $74,250,000 for an engineering building (phase II); (9) The University of Texas Southwestern Medical Center at Dallas, $42 million for the north campus (phase 5); (10) The University of Texas Medical Branch at Galveston, $57 million for the Galveston National Laboratory; (11) The University of Texas Health Science Center at Houston, $60 million for a replacement building for The University of Texas Dental Branch at Houston; (12) The University of Texas Health Science Center at San Antonio, $60 million for the South Texas Research Facility; (13) The University of Texas Health Science Center at Tyler, $21,120,000 for an academic health center; (14) The University of Texas M. D. Anderson Cancer Center, $40 million for a Center for Targeted Therapy research building; and (15) The University of Texas at Tyler: (A) $6,300,000 for the expansion of the Palestine campus; and (B) $43,200,000 for the completion, renovation, and expansion of engineering and sciences facilities. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of The University of Texas System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of The University of Texas System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. Sec. 55.1753. UNIVERSITY OF HOUSTON SYSTEM; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of the University of Houston System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for the following institutions, to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board, in aggregate principal amounts not to exceed the following: (1) the University of Houston, $57,600,000 for renovation of science laboratories; (2) the University of Houston--Clear Lake, $10,604,808 for Arbor Building renovations and additions; (3) the University of Houston--Downtown, $31,626,000 for a classroom building at Shea Street; and (4) the University of Houston--Victoria: (A) $22,900,000 for an academic building at the University of Houston System Center at Sugar Land; (B) $6,719,400 for regional economic development; and (C) $1,800,000 for allied health facilities. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of the University of Houston System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of the University of Houston System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. Sec. 55.1754. TEXAS STATE UNIVERSITY SYSTEM; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of the Texas State University System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board for the following institutions not to exceed the following aggregate principal amounts for the projects specified as follows: (1) Lamar University, $4,500,000 for renovations and additions to the Lucas Engineering Building; (2) Lamar State College--Orange, $1,837,280 for Hibernia Bank Building acquisition and renovation; (3) Lamar State College--Port Arthur, $1,849,500 for a computer/learning center; (4) Texas State University--San Marcos: (A) $42,700,000 for an undergraduate academic center; and (B) $36 million for facilities for the Round Rock Higher Education Center in Williamson County (phase II); and (5) Sam Houston State University, $10 million for the construction of a center for the performing arts (phase I). (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of the Texas State University System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of the Texas State University System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. Sec. 55.1755. UNIVERSITY OF NORTH TEXAS SYSTEM; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of the University of North Texas System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board for the following institutions and facilities not to exceed the following aggregate principal amounts for the projects specified as follows: (1) the University of North Texas, $50 million for the construction of a College of Business Administration building; (2) the University of North Texas Health Science Center at Fort Worth, $41,972,400 for campus expansion and construction of a public health education building; and (3) the University of North Texas Dallas Campus, $25 million for a general academic building. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of the University of North Texas System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of the University of North Texas System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. (d) Notwithstanding Subsection (a), the University of North Texas System may not issue bonds under this section for facilities at the University of North Texas Dallas Campus until the Texas Higher Education Coordinating Board certifies that enrollment at the University of North Texas Dallas Campus has reached an enrollment equivalent of 1,500 full-time students for one semester. If that enrollment is not reached by January 1, 2010, the system's authority to issue bonds for the University of North Texas Dallas Campus under this section expires on that date. Sec. 55.1756. TEXAS WOMAN'S UNIVERSITY. (a) In addition to the other authority granted by this subchapter, the board of regents of Texas Woman's University may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for renovations and additions to the science building on the Denton campus of Texas Woman's University, to be financed through the issuance of bonds in accordance with this subchapter in an aggregate principal amount not to exceed $21,739,712. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of Texas Woman's University, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. Sec. 55.1757. MIDWESTERN STATE UNIVERSITY; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of Midwestern State University may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects at Midwestern State University, to be financed through the issuance of bonds in accordance with this subchapter not to exceed the following aggregate principal amounts for the projects specified as follows: (1) $7,700,000 for the renovation of the D. L. Ligon Building; and (2) $2,700,000 for the Fowler Engineering Building. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of Midwestern State University, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. Sec. 55.1758. STEPHEN F. AUSTIN STATE UNIVERSITY. (a) In addition to the other authority granted by this subchapter, the board of regents of Stephen F. Austin State University may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects at Stephen F. Austin State University, to be financed through the issuance of bonds in accordance with this subchapter not to exceed the following aggregate principal amounts for the projects specified as follows: (1) $20,178,000 for an education research facility; and (2) $10 million for a campus deferred maintenance reduction plan. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of Stephen F. Austin State University, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. Sec. 55.1759. TEXAS TECH UNIVERSITY SYSTEM; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of the Texas Tech University System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board not to exceed the following aggregate principal amounts for the projects specified as follows: (1) Texas Tech University Health Sciences Center: (A) $8,010,000 for the School of Pharmacy expansion in Amarillo; (B) $18 million for the Amarillo research facility; and (C) $6,300,000 for the El Paso Medical Science Building renovation; and (2) Texas Tech University: (A) $25 million for the renovation of a classroom building; (B) $25 million for the Rawls College of Business Administration building; and (C) $7,500,000 for a law school trial advocacy/education center. (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of an institution, branch, or entity of the Texas Tech University System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of the Texas Tech University System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. Sec. 55.17591. TEXAS SOUTHERN UNIVERSITY; ADDITIONAL BONDS. (a) In addition to the other authority granted by this subchapter, the board of regents of Texas Southern University may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for projects at Texas Southern University, to be financed through the issuance of bonds in accordance with this subchapter not to exceed the following aggregate principal amounts for the projects specified as follows: (1) $31,500,000 for the School of Science and Technology; and (2) $15 million for a branch campus multipurpose Academic Center (MAC). (b) The board may pledge irrevocably to the payment of bonds authorized by this section all or any part of the revenue funds of Texas Southern University, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) Notwithstanding Subsection (a), the board of regents of Texas Southern University may not issue bonds under this section for a branch campus multipurpose Academic Center (MAC) until the Texas Higher Education Coordinating Board grants Texas Southern University the approval to operate the branch campus. If approval to operate the branch campus is not granted by January 1, 2010, the board of regents' authority to issue bonds for a multipurpose Academic Center (MAC) under this section expires on that date. Sec. 55.17592. TEXAS STATE TECHNICAL COLLEGE SYSTEM. (a) In addition to the other authority granted by this subchapter, the board of regents of the Texas State Technical College System may acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, facilities, roads, or related infrastructure, for HVAC replacement at Texas State Technical College--Waco, to be financed by the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board, in an aggregate principal amount not to exceed $3,125,520. (b) The board may pledge irrevocably to the payment of those bonds all or any part of the revenue funds of an institution, branch, or entity of the Texas State Technical College System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of the Texas State Technical College System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. SECTION 2. Subchapter B, Chapter 55, Education Code, is amended by adding Section 55.17521 to read as follows: Sec. 55.17521. THE UNIVERSITY OF TEXAS AT DALLAS: LIMITATIONS ON CERTAIN DEBT SERVICE REIMBURSEMENT. The state may not appropriate money to reimburse The University of Texas System for debt service on long-term obligations related to the construction of a natural science and engineering research building at The University of Texas at Dallas in accordance with the economic development agreement entered into between this state and the board of regents of the system in excess of the following amounts: (1) for a state fiscal year before the state fiscal year ending August 31, 2018, $6,540,600; (2) for the state fiscal year ending August 31, 2018, $6,213,570; (3) for the state fiscal year ending August 31, 2019, $5,559,510; (4) for the state fiscal year ending August 31, 2020, $4,905,450; (5) for the state fiscal year ending August 31, 2021, $4,251,390; (6) for the state fiscal year ending August 31, 2022, $3,597,330; (7) for the state fiscal year ending August 31, 2023, $2,616,240; (8) for the state fiscal year ending August 31, 2024, or August 31, 2025, $1,308,120; and (9) for the state fiscal year ending August 31, 2026, or August 31, 2027, $654,060. SECTION 3. Section 61.0572(e), Education Code, is amended to read as follows: (e) Approval of the board is not required to acquire real property that is financed by bonds issued under Section 55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174, 55.1742, 55.1743, [or] 55.1744, or 55.1751-55.17592, except that the board shall review all real property to be financed by bonds issued under those sections to determine whether the property meets the standards adopted by the board for cost, efficiency, and space use. If the property does not meet those standards, the board shall notify the governor, the lieutenant governor, the speaker of the house of representatives, and the Legislative Budget Board. SECTION 4. Section 61.058(b), Education Code, is amended to read as follows: (b) This section does not apply to construction, repair, or rehabilitation financed by bonds issued under Section 55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174, 55.1742, 55.1743, [or] 55.1744, or 55.1751-55.17592, except that the board shall review all construction, repair, or rehabilitation to be financed by bonds issued under those sections to determine whether the construction, rehabilitation, or repair meets the standards adopted by board rule for cost, efficiency, and space use. If the construction, rehabilitation, or repair does not meet those standards, the board shall notify the governor, the lieutenant governor, the speaker of the house of representatives, and the Legislative Budget Board. SECTION 5. Section 1371.001(4), Government Code, is amended to read as follows: (4) "Issuer" means: (A) a home-rule municipality that: (i) adopted its charter under Section 5, Article XI, Texas Constitution; (ii) has a population of 50,000 or more; and (iii) has outstanding long-term indebtedness that is rated by a nationally recognized rating agency for municipal securities in one of the four highest rating categories for a long-term obligation; (B) a conservation and reclamation district created and organized as a river authority under Section 52, Article III, or Section 59, Article XVI, Texas Constitution; (C) a joint powers agency organized and operating under Chapter 163, Utilities Code; (D) a metropolitan rapid transit authority or regional transportation authority created, organized, and operating under Chapter 451 or 452, Transportation Code; (E) a conservation and reclamation district organized or operating as a navigation district under Section 52, Article III, or Section 59, Article XVI, Texas Constitution; (F) a district organized or operating under Section 59, Article XVI, Texas Constitution, that has all or part of two or more municipalities within its boundaries; (G) a state agency, including a state institution of higher education; (H) a hospital authority created or operating under Chapter 262 or 264, Health and Safety Code, in a county that: (i) has a population of more than 3.3 million; or (ii) is included, in whole or in part, in a standard metropolitan statistical area of this state that includes a county with a population of more than 2.2 million; (I) a hospital district in a county that has a population of more than two million; (J) a nonprofit corporation organized to exercise the powers of a higher education loan authority under Section 53B.47(e), Education Code; (K) a county: (i) that has a population of 3.3 million or more; or (ii) that, on the date of issuance of obligations under this chapter, has authorized, outstanding, or any combination of authorized and outstanding, indebtedness of at least $100 million secured by and payable from the county's ad valorem taxes and the authorized long-term indebtedness of which is rated by a nationally recognized rating agency of securities issued by local governments in one of the four highest rating categories for a long-term obligation; (L) an independent school district that has an average daily attendance of 50,000 or more as determined under Section 42.005, Education Code; (M) a municipality or county operating under Chapter 334, Local Government Code; [or] (N) a district created under Chapter 335, Local Government Code; or (O) a junior college district that has a total headcount enrollment of 40,000 or more based on enrollment in the most recent regular semester. SECTION 6. UNIVERSITY OF TEXAS AT DALLAS: REIMBURSEMENT FOR CERTAIN DEBT SERVICE. In addition to other amounts previously appropriated for the state fiscal biennium ending August 31, 2007, the amount of $5.3 million is appropriated out of the general revenue fund to The University of Texas System for the remainder of the state fiscal biennium ending August 31, 2007, for the purpose of addressing the demonstrated need for science and engineering research facilities at The University of Texas at Dallas by reimbursing The University of Texas System for debt service paid on the long-term obligations related to the construction of a natural science and engineering research building at The University of Texas at Dallas in accordance with the economic development agreement entered into between this state and the board of regents of the system. Of the amount appropriated by this section, at least $1.2 million shall be expended for the purpose of reimbursing debt service payments made during the remainder of the state fiscal year ending August 31, 2006. SECTION 7. This Act does not affect any authority or restriction regarding the activities that a public institution of higher education may conduct in connection with a facility financed by bonds authorized by this Act. SECTION 8. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect on the 91st day after the last day of the legislative session. ______________________________ ______________________________ President of the Senate Speaker of the House I certify that H.B. No. 153 was passed by the House on May 11, 2006, by the following vote: Yeas 141, Nays 0, 1 present, not voting; and that the House concurred in Senate amendments to H.B. No. 153 on May 15, 2006, by the following vote: Yeas 140, Nays 3, 1 present, not voting; passed subject to the provisions of Article III, Section 49a, of the Constitution of the State of Texas. ______________________________ Chief Clerk of the House I certify that H.B. No. 153 was passed by the Senate, with amendments, on May 14, 2006, by the following vote: Yeas 29, Nays 0, 1 present, not voting; passed subject to the provisions of Article III, Section 49a, of the Constitution of the State of Texas. ______________________________ Secretary of the Senate I certify that the amounts appropriated in the herein H.B. No. 153, 3rd Called Session of the 79th Legislature, are within amounts estimated to be available in the affected fund. Certified_____________________ ______________________________ Comptroller of Public Accounts APPROVED: __________________ Date __________________ Governor